EU: Withdrawal and Future Relationship (Motions)

Debate between James Cartlidge and Chris Philp

Wednesday 27th March 2019 Commons Chamber

[Chris Philp]

That was not the case that the right hon. Lady made. She made the case that people should be able to change their mind repeatedly, which implies that she would support any number of referendums.

I rise to speak against motion (D), in the name of my hon. Friend the Member for Grantham and Stamford (Nick Boles), on common market 2.0, and a similar motion, (H), in the name of my hon. Friend the Member for Camborne and Redruth (George Eustice), on membership of the European economic area. I strongly oppose those motions for two reasons. First, they both entail signing up to full single market rules. The House of Commons Library published a paper only yesterday that says on page 19:

“EEA membership… involves a range of obligations, including implementation of EU rules relating to the Single Market”,

with no decision-making role, other than being “consulted”. For a great British institution such as the City of London or our entire industrial economy, our merely being consulted on the rules that govern them simply is not good enough.

Secondly, there is the question of financial contributions, which was a controversial part of the referendum campaign. Another House of Commons paper published on 21 December found that Norway pays per capita contributions that are around half our current level—so, one would assume, about £5 billion per year. The promise made to the British people about saving money would not be delivered in either common market 2.0 or as a member of the European economic area.

We then come to the question of free movement, which was another contentious issue during the referendum campaign. Membership of the single market entails full free movement. Some Members have referred to various brakes or safeguards in the European economic area agreement. Specifically, article 112 says that any such safeguards must be “restricted” in their “scope and duration”. Article 114 says that if a state, like the UK, were to use those safeguards, other member states could take “rebalancing measures” against them, meaning that some of the benefits of single market membership could be withdrawn. No country other than Liechtenstein, in very limited circumstances, has ever taken advantage of those provisions.

[James Cartlidge]

Switzerland.

[Chris Philp]

Well, Switzerland is currently engaged in a running battle with the European Union and has been unable to implement the result of its own 2014 referendum on free movement.

In the 54 seconds remaining, let me briefly turn to the question of trade deals, which relates only to motion (D) and not motion (H). Under the proposal of my hon. Friend the Member for Grantham and Stamford, during our customs union membership—this would probably apply to the Labour party’s official proposal as well—we would be bound by all trade agreements done by the European Union. We would be compelled to follow them, without the right of veto that we currently enjoy, and we would be prevented from doing any free trade deals of our own. That would be greatly to our disadvantage and would exclude countries such as India, China and the USA. For those reasons, I will be opposing motions (D) and (H).

Finance (No. 3) Bill

Debate between James Cartlidge and Chris Philp

Committee: 2nd sitting: House of Commons
Tuesday 20th November 2018 Commons Chamber

[Chris Philp]

It is a huge pleasure to follow my hon. Friend the Member for Ochil and South Perthshire (Luke Graham), who is always an incredibly eloquent and articulate commentator on matters financial.

I am delighted to see that news of my speech has spread to the office of the shadow Chancellor, the right hon. Member for Hayes and Harlington (John McDonnell), and that he has come to the Front Bench especially to hear it. I am delighted that he has chosen to come to the Chamber for this purpose; I eagerly await the imminent arrival of the Chancellor as well.

I want to speak to new clauses 5 and 6, which were tabled by the shadow Minister, the hon. Member for Oxford East (Anneliese Dodds). Their substance would require more analysis and reports on various aspects of the Government’s programme in the areas of avoidance and evasion. However, as so often in life, action and results speak much louder than reports and words. The Government’s actions and the results they have achieved are far more powerful than any call for evidence or any call for a report can demonstrate.

The hon. Lady posed some questions about whether the tax gap is the best measure. It is an internationally accepted measure and it provides for consistent comparison over time, so it is a good way of consistently comparing the record of one Government with that of another. There may be other measures, but it is at least a consistent measure and it is also a good way to compare different countries, as well as to make comparisons within a country over time.

The current tax gap in the United Kingdom is 5.7%, which is extraordinarily low by comparison with other major countries and significantly lower than it was when Labour was in office, when it was between 8% and 10%. Whatever quibbles the hon. Lady may have about the things that are included or excluded, what is clear is that the tax gap is low compared with what it was under Labour and low by comparison with other countries. That is not surprising.

[James Cartlidge]

rose—

[Chris Philp]

But before I lay out the reasons why it is not surprising, I will give way to my hon. Friend.

[James Cartlidge]

My hon. Friend is making an excellent speech on what action is happening, but does he agree that one thing not captured in the statistics is what I would call positive inducement as opposed to avoidance? If there are competitive rates of tax, people are encouraged to avoid avoidance and conduct legitimate activity by paying a standard tax.